If you recently started or plan to start a business in Red Cliff CO or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Red Cliff CO.
Obtaining a Tax ID Number (EIN)
When starting a business in Red Cliff CO, serving as the administrator or executor of an estate, creator of a Trust or operating a Non Profit Organization obtaining a Tax ID (EIN) is a key responsibility. A Tax ID also known as an Employer ID Number (EIN) is a unique nine digit number that identifies your business or entity with the IRS for tax purposes, essentially like a Social Security Number for the entity. A Tax ID (EIN) is used for opening a business
bank account, filing business tax returns and in many cases is required when applying for business licenses. In most cases it is helpful to apply for a Tax ID (EIN) as soon as your start planning a business to ensure that there are no delays in obtaining the correct licenses, financing and opening a business bank account that would be needed to operate.
Information to Consider Prior to Applying
Before applying for your Tax ID (EIN) you may want to consider a few things before starting the application including:
- Determine which structure your business or organization will operate as
- Determine the individual or organization that will serve as the responsible party
- Determine the physical address the business/entity will use – A physical address is required for all Tax ID (EIN)’s and a separate mailing address can be specified
Definition of Entities
- Sole Proprietor – An individual who owns a company that is not incorporated or registered with the state as a limited liability company (LLC).
- Limited Liability Company (LLC) – A LLC is a structure formed by filing articles of organization which allows members limited liability protection and pass through taxation.
- Corporation – A person or group of people who establish a legal entity by filing articles of incorporation with the state’s secretary of state.
- Estate of Deceased – An estate (or decedent estate) or succession is a legal entity created as a result of a person’s death.
- Trusts – All types of trusts including conservatorships, custodianships, guardianships, irrevocable trusts, revocable trusts, and receiverships.
- Partnership – An unincorporated organization in which two or more individuals share the profits and liabilities of a business venture.
- Church – For tax purposes, a “church” refers to any organization claiming to be a church including temples, mosques, and other houses of worship.
- Non-Profit Organization – Includes public charities, educational organizations, PTA/PTO Organizations, Community Sports Teams, Homeowners/Condo Associates, etc.
Colorado State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Red Cliff CO you will also likely need a Colorado State Tax ID. This ID is needed to pay business taxes, state income tax and/or sales tax on items you sell. Generally the State Tax ID is used for the follow:
- Sales and Use Tax
- Employee Income Tax Witholding
- Sales Tax Exemption Permits
- Excise Taxes for items like Alcohol, Tobacco, Firearms, Oil & Gas, heavy machinery, etc.
For specific detail refer to the Colorado State Website at https://www.colorado.gov/revenue
Cities in Colorado
- Copper Mtn, CO
- Frisco, CO
- Leadville, CO
- Climax, CO
- Minturn, CO
- Gilman, CO
- Vail, CO
- East Vail, CO
- West Vail, CO
- Alma, CO
- Breckenridge, CO
- Blue River, CO
- Avon, CO
- Beaver Creek, CO
- Norrie, CO
- Meredith, CO
- Nast, CO
- Keystone, CO
- Dillon, CO
- Montezuma, CO
- Cordillera, CO
- Edwards, CO
- Eagle, CO
- Heeney, CO
- Silverthorne, CO
- Granite, CO
- Twin Lakes, CO
- Wolcott, CO
- Jefferson, CO
- Basalt, CO
- Ruedi, CO
- Fairplay, CO
- Como, CO
- Woody Creek, CO
- Georgetown, CO
- Bond, CO
- Silver Plume, CO
- Aspen, CO
- Aspen Gerbaz, CO
- Empire, CO
- Grant, CO
- Bailey, CO
- Idaho Springs, CO
- Snowmass Vlg, CO
- West Village, CO
- Snowmass Village, CO
- Shawnee, CO
- Mc Coy, CO